Tax Deducted at Source (TDS) — Your Rights in Gujarat

Source: Income Tax Act, 1961, ss. 192–206AA; Income Tax Rules, 1962, Rule 31A; CBDT Circular No. 4/2008

Reviewed by the Commoner Law Editorial Team. Sourced from Indian central (Union) law — Constitution of India, central Acts of Parliament, and Supreme Court decisions. State-level information reflects each state's own Acts and High Court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards

Indian Central Law

What is this right?

TDS is the mechanism by which a payer deducts income tax at source before crediting salary, interest, rent, professional fees, or other payments to the recipient.

Right to Form 16/16A: Every TDS deductor must issue Form 16 (for salary) or Form 16A (for other payments) to you annually — Form 16 by 15 June; Form 16A within 15 days of the end of each quarter. Failure to issue Form 16/16A attracts a penalty of ₹100 per day on the deductor.
Right to verify deductions via Form 26AS / AIS: All TDS deducted against your PAN is reflected in your Form 26AS (Annual Tax Credit Statement) and Annual Information Statement (AIS) on incometax.gov.in — verify this before filing your ITR.
Lower TDS certificate (s. 197): If your total income is likely to be below the taxable threshold, you can apply to the Assessing Officer for a certificate authorising deduction at a lower rate or nil rate.
No PAN / Higher TDS (s. 206AA): If you do not provide your PAN to the deductor, TDS is deducted at 20% (or the applicable rate, whichever is higher) — always provide your PAN.
Bank FD interest: Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens) — submit Form 15G/15H if your total income is below the taxable limit to avoid TDS.

When does it apply?

Your employer or bank has deducted TDS from your salary or interest income.
A client or company has deducted TDS on professional fees or contract payments.
TDS shows up in Form 26AS but not in Form 16/16A, or vice versa — there is a mismatch.

What to Do If TDS Has Been Incorrectly Deducted or Not Credited in India

Always provide your PAN to every payer (employer, bank, tenant, client) to ensure TDS is deducted at the correct rate.
Submit Form 15G (below 60 years) or Form 15H (60+ years) to your bank at the start of each financial year if your total income is below the taxable limit — this prevents TDS on bank interest.
Verify Form 26AS against Form 16/16A — if TDS deducted by the employer is not reflecting, contact your employer to file a correction in their TDS return.
If TDS has been deducted and not deposited by the deductor (credit not in Form 26AS), file a complaint on the TRACES portal (tdscpc.gov.in).

What should you NOT do?

Do not assume Form 16 is automatically accurate — cross-check every figure against your actual salary slips and investment proofs.
Do not submit Form 15G/15H if your income actually exceeds the taxable limit — submitting a false declaration is a punishable offence (s. 277).
Do not ignore a mismatch between Form 26AS and your ITR — file a revised return if needed, before the deadline.

Gujarat Law

How Gujarat differs from central law

Tax Deducted at Source (TDS) provisions in Gujarat follow the central Income Tax Act, 1961. Employers, businesses, and other payers in Gujarat must deduct TDS at prescribed rates on payments such as salary, interest, professional fees, rent, and contract payments. Gujarat's Principal Chief Commissioner of Income Tax (TDS) oversees TDS compliance in the state.

If excess TDS is deducted, you have the right to claim a refund by filing your income tax return. Gujarat taxpayers frequently face TDS issues in the real estate sector (TDS under Section 194-IA on property purchase exceeding Rs. 50 lakh), the diamond and textile trading sector (TDS on sales commission and brokerage), and the professional services sector. The Gujarat High Court has addressed several TDS disputes, including cases involving the correct characterization of payments for TDS purposes.

Gujarat's professional tax (maximum Rs. 2,500 per year) is separate from TDS and is deducted by the employer in addition to income tax TDS. Both deductions appear on your payslip and Form 16.

Additional Steps in Gujarat

Check your TDS deductions on Form 26AS at incometax.gov.in. If TDS is incorrectly deducted, ask the deductor to file a correction return. If excess TDS was deducted, claim a refund through your income tax return. For persistent issues, contact the Income Tax Assessing Officer or file a grievance on the income tax e-filing portal. The CPC (Centralized Processing Centre) helpline is 1800-103-0025 (toll-free).

Relevant Law: Income Tax Act, 1961, Sections 192-206; Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976

Common Questions

When does tax deducted at source (tds) — your rights apply?

Your employer or bank has deducted TDS from your salary or interest income.A client or company has deducted TDS on professional fees or contract payments.TDS shows up in Form 26AS but not in Form 16/16A, or vice versa — there is a mismatch.

What should I do if TDS deducted from my salary or income is wrong or not showing in my Form 26AS in India?

Always provide your PAN to every payer (employer, bank, tenant, client) to ensure TDS is deducted at the correct rate.Submit Form 15G (below 60 years) or Form 15H (60+ years) to your bank at the start of each financial year if your total income is below the taxable limit — this prevents TDS on bank interest.Verify Form 26AS against Form 16/16A — if TDS deducted by the employer is not reflecting, contact your employer to file a correction in their TDS return.If TDS has been deducted and not deposited by the deductor (credit not in Form 26AS), file a complaint on the TRACES portal (tdscpc.gov.in...

What mistakes should I avoid with tax deducted at source (tds) — your rights?

Do not assume Form 16 is automatically accurate — cross-check every figure against your actual salary slips and investment proofs.Do not submit Form 15G/15H if your income actually exceeds the taxable limit — submitting a false declaration is a punishable offence (s. 277).Do not ignore a mismatch between Form 26AS and your ITR — file a revised return if needed, before the deadline.

Tax Deducted at Source (TDS) — Your Rights in other states

Same topic, different jurisdiction. Pick the one that applies to you.